Net energy tax credit advanced

Senators gave first-round approval May 23 to a bill that would provide a tax credit to customers who generate electricity.

LB90, introduced by Malcolm Sen. Ken Haar, would allow an offset of a customer-generator’s electricity production against their consumption. A customer-generator is defined as an end-use electricity customer that generates electricity on the customer’s side of the meter from a qualified facility.

Haar said in his statement of intent that the bill would ensure that customers pay taxes only on the net amount of electricity consumed.

“Net metering allows customers to generate their own electricity through renewable energy and trade it one for one with the utility,” he said.

Papillion Sen. Jim Smith questioned the fairness and necessity of the bill.

“We’re allowing [customer-generators] to not pay taxes on the net amount, yet the utility still has to provide the capacity incorporated into that energy charge,” he said. “This is not beneficial to the remaining customers not using a net meter.”

Senators advanced the bill from general file on a 29-1 vote.